In fact, many people have a misconception about why WeChat Pay provides cross-border payment products. Does it mean that all overseas customers can use WeChat Pay? Is the overseas WeChat Pay designed specifically for the overseas (but Chinese) customer?
Actually, the overseas WeChat Pay is designed especially for Chinese customers who want to travel and shop abroad. Let us explain how overseas merchants can improve the quality of the service they provide to Chinese customers through WeChat Pay.
Real-Time Exchange Rates, No Need to Exchange Foreign Currencies
WeChat Pay allows Chinese customers to use RMB to make purchases when shopping abroad. Since the products are labelled in GBP, WeChat Pay adopts the real-time exchange rate of the China Construction Bank (CCB) in order to transfer GBP for the Chinese customers to pay with. This process is highly convenient, since it eliminates the need to exchange foreign currencies, and thus saves the extra exchange fee. As regards the overseas merchants, they will receive GBP as the settlement currency instead of having to exchange currency. In this process, WeChat acts as a bridge between Chinese customers and overseas merchants by providing cross-border payment solutions.
The WeChat payment system now supports 13 foreign currencies, and merchants in 28 countries and regions have adopted WeChat Pay as a payment method for their online and offline transactions. Customers avoid the need to exchange large amounts of foreign currency, and therefore WeChat Pay saves them a lot of trouble. For overseas merchants, in addition to not having to exchange currency, the WeChat payment method offers them a new opportunity to provide long-term customer management and service upgrades.
Eliminating Language Barriers between Overseas Merchants and Customers
Since they are based overseas, merchants can face considerable difficulties in dealing with Chinese customers. Besides the issue of communication, Chinese customers’ shopping style and habits are also very strange to overseas merchants. Is there a communication channel that allows merchants to communicate with Chinese customers more easily? The answer is an emphatic yes! WeChat and WeChat Pay can help overseas merchants to improve their service in two ways:
- Firstly, in the process of shopping — fluent communication with a payment method they are familiar with can help overseas merchants provide a better service and experience to their Chinese customers.
- Secondly, once the Chinese tourists have left the U.K., overseas merchants can use WeChat’s promotional products to maintain long-term communication and contact with them, and thus keep the door open for future transactions.
Therefore, the WeChat Pay system for overseas merchants not only enhances the shopping experience for Chinese customers through a familiar payment method, it also allows the merchants to manage their relationship with Chinese tourists over a long period and expand the Chinese consumer market through the online WeChat platform.
A More Advanced Payment Technology, A More Efficient Payment Experience
Compared with ordinary cash and card payments, WeChat payment not only brings convenient QR Code payment solutions, it also assists local merchants to build their online stores, advertisements, etc., and expand their market while reducing retailing/labour costs.
WeChat payment adopts the method of exporting proprietary technologies to local merchants to help them optimise their business operations. For example, for merchants in Hong Kong, WeChat Pay will be like cooperating with certain merchants in Mainland China to create self-service vending machines, unmanned smart shops and so on. For Hong Kong, where labour costs are extremely high, this upgrading of efficiency is undoubtedly very attractive. In this regard, we believe WeChat Pay will provide an excellent opportunity for British merchants to attract more Chinese customers and upgrade their payment experience.